Slide 1: Eagle East: Discovery through Necessity
Eagle East: Discovery through Necessity 1
Slide 2: Cautionary Statements
Cautionary Statements Caution Regarding Forward-Looking Information and Non-GAAP Performance Measures This presentation contains forward-looking information, including, but not limited to, guidance on estimated annual production and cash costs. This forward-looking information is not based on histor
Slide 3: Globally Diversified Mid-Tier Base Metal Miner
Globally Diversified Mid-Tier Base Metal Miner Zinkgruvan Freeport Cobalt1 Zinc-Lead-Copper Cobalt Refinery (Sweden) (Finland) Eagle Nickel-Copper (USA) Neves-Corvo Copper-Zinc (Portugal) Tenke Fungurume1 Copper-Cobalt (DRC) Candelaria2 Copper-Gold-Silver (Chile) • Operations: 6 underground mines an
Slide 4: Eagle Ni-Cu Mine, Michigan, USA
Eagle Ni-Cu Mine, Michigan, USA 50 km northwest of Marquette in the Upper Peninsula of Michigan
Slide 5: Regional Geology: Mid-Continent Rift
Regional Geology: Mid-Continent Rift Basement Gneiss Baraga Basin (metased’s) Eagle Mine •Within the 1 Ga Mid-Continent Rift •Highly endowed copper-nickel geologic province
Slide 6: Tectonic Environment: Rift and Extension
Tectonic Environment: Rift and Extension • Ni-rich melts are assumed to be high-degree partial melts of mantle peridotite formed in mantle plumes
Slide 7: Eagle Mine and Eagle East Deposit Overviews
Eagle Mine and Eagle East Deposit Overviews Reserves & Resources as at 30 June 2016 K Tonnes Grade Ni (%) Grade Cu (%) Contained Ni (kt) Contained Cu (kt) Eagle P&P 3,717 2.5 2.2 95 82 M&I 3,671 3.3 2.7 119 99 Inferred 44 1.1 1.1 0 0 Eagle East Inferred 1,180 5.1 4.3 61 51 1 km 7
Slide 8: Eagle Mine: Mineralization Styles & Distribution
Eagle Mine: Mineralization Styles & Distribution Semi-Massive Sulphides (25-75% sulphides) Intrusive Breccia (variable % sulphides) Massive Sulphides (75-100% sulphides) Mineralized Peridotite (5-25% sulphides)
Slide 9: Eagle Discovery Story
Eagle Discovery Story • Kennecott Exploration (Rio Tinto) Regional zinc exploration 1990-1992 • Voisey’s Bay (Canada) Ni-Cu discovery in 1993 • Identified mineralized peridotite in Roland Lake area: shifted from zinc to nickel exploration • Discovered massive sulphide boulder w/ Ni-Cu at surface 197
Slide 10: Eagle Discovery Story
Eagle Discovery Story Airborne magnetics 1VD Eagle Intrusive Eagle East Intrusive
Slide 11: Eagle Discovery Story
Eagle Discovery Story 1995: Initial drilling focused on testing outcropping Eagle East Intrusive 1996-2001: No Drilling 2002: Drilling program resumed; High-grade Eagle deposit discovered on 1st hole ` 2004: PEA Study of Eagle 2005-2009 Eagle definition drilling & permitting 2008 PEA study of Eagle
Slide 12: Dynamic Dyke Conduit Concept summary
Dynamic Dyke Conduit Concept summary X-Sectional View Mixing of Silicate + Sulphide magmas = Semi-Massive Sulphide plume Fault jog Injection of Injection of Density Injection of movement barren sulphide + separation to olivine cumulate peridotite silicate form massive + silicate magma magma magma su
Slide 13: Eagle East: Actual Ore Conduit
Eagle East: Actual Ore Conduit • Eagle East typical cross section showing massive sulphide (MSU) and semi- massive sulphide (SMSU) mineralization within thickened peridotite conduit 13
Slide 14: Geophysical Challenges
Geophysical Challenges • Magnetics & Electromagnetics are common Massive Sulphides Black Slate w/ Po targeting tools for magmatic Ni-Cu sulphides • Massive sulphide: magnetic and conductive • Siltstone and Black Slate with pyrrhotite beds: also magnetic and conductive • Airborne magnetic response li
Slide 15: A Key Risk of Acquisition: Short Mine Life
A Key Risk of Acquisition: Short Mine Life Eagle East: • No economic resource Eagle Mine: Initial Ore • Conduit Reserves (Feb 2013): appears to be closing off at 5.2 Mt of 2.93% Ni, 2.49 Cu* depth That is equivalent to only 7 years Mine Life • This means that we must deliver a new mineable resource
Slide 16: Rio Tinto diamond drilling in the Eagle Block (to 2013)
Rio Tinto diamond drilling in the Eagle Block (to 2013) Eagle East Intrusive Barren Peridotite dyke
Slide 17: Eagle East Mineralization (as known in 2013)
Eagle East Mineralization (as known in 2013) • Eagle East massive sulphides: very small pods but very high tenor so if a larger tonnage body can be found it will be very high grade • Follow host peridotite intrusive downwards with precision navi-drilling to test for economic concentration of Ni-Cu s
Slide 18: Starting point: 2013 -- Follow the Conduit down
Starting point: 2013 -- Follow the Conduit down • Objectives: Follow the conduit • Accumulation of high tenor sulfides should mean high grade MSU ~750m • SMSU is a vector to MSU (remobilized) long section ~600m You are here plan view
Slide 19: Eagle East Deep Exploration History: 222A
Eagle East Deep Exploration History: 222A • Successfully tested directional drilling long section You are here plan view
Slide 20: Eagle East Deep Exploration History: 222B
Eagle East Deep Exploration History: 222B • Successfully drilled down the dip of the intrusion. long section You are here plan view
Slide 21: Eagle East Deep Exploration History: 222C
Eagle East Deep Exploration History: 222C • First IBRX intersected at Eagle East • Prior to this, no SMSU style mineralization had been seen at Eagle East • At Eagle, this is the boundary between barren pyroxenite and SMSU long section You are here plan view
Slide 22: Eagle East Deep Exploration History: 222D
Eagle East Deep Exploration History: 222D • First SMSU intersected at Eagle East • Prior to this, no SMSU had been seen at Eagle East • This is our vector that we are “downstream” from MSU long section You are here plan view
Slide 23: Eagle East Deep Exploration History: 222E
Eagle East Deep Exploration History: 222E • 222E intersected SMSU in main conduit zone • Intersected barren peridotite below • Is the barren peridotite the side of the conduit or the bottom of the conduit? Does it go vertical or horizontal? long section Where are we? plan view
Slide 24: Does the Conduit Steepen or Flatten?
Does the Conduit Steepen or Flatten? Is this the side or the bottom? long section
Slide 25: Eagle East Deep Exploration History: 222F
Eagle East Deep Exploration History: 222F • 222F drilled under the peridotite and closed it off vertically • The conduit must flatten out to the East long section You are here plan view
Slide 26: Eagle East Deep Exploration History: 331
Eagle East Deep Exploration History: 331 • 331 hit the conduit and intersected 56.5m of peroditite with a 5.2m core of SMSU • This is the Eagle East conduit: follow it down to the East • SMSU is a distal vector to MSU long section You are here plan view
Slide 27: Eagle East Deep Exploration History: 331A
Eagle East Deep Exploration History: 331A • 331A hit the conduit and intersected 52.5m of peroditite with a 3.9m core of SMSU • Promising results. Keep going…. long section You are here plan view
Slide 28: Eagle East Deep Exploration History: 331B
Eagle East Deep Exploration History: 331B • 331B hit the conduit and intersected 19.2m of peroditite with a 5.9m core of SMSU… • …followed by a 0.74m MSU sill 8m outside of the intrusion • MSU in sediments means MSU in the conduit! long section 0.74m MSU sill @ You are here 7.2% Ni, 5.7% Cu plan vie
Slide 29: Significance of Massive Sulphide (MSU) sill
Significance of Massive Sulphide (MSU) sill Eagle East Conduit X-Section Eagle Orebody X-Sections MSU sill: 0.74m MSU @ 7.2% Ni, 5.7% Cu (331B) Thick MSU should be here at bottom MSU silling into of conduit x-sectional views sediments
Slide 30: Eagle East Deep Exploration History: 331G
Eagle East Deep Exploration History: 331G • 331G: Hit low grade MPER dike and MSU sill in sediments, with no SMSU • Top side of conduit, probably above the mixing zone • Hit 47.5m conduit with 5.6m of MSU 6.49m @ 8.0% Ni, 4.4% Cu, long section You are here plan view
Slide 31: Eagle East Deep Exploration History: 331H
Eagle East Deep Exploration History: 331H • 331H: Undercut G • Intersected 18.35m conduit with 13.85m of SMSU, and 9.83m of MSU plan view long section You are here 23.85m @ 5.3% Ni, 4.4% Cu Incl. 9.83m MSU @ 8.2% Ni, 7.1% Cu
Slide 32: Eagle East Deep Exploration History: 331I
Eagle East Deep Exploration History: 331I • 331I: Undercut H and intersected full conduit of mineralization. • Conduit width 30.85m • SMSU 8.92m • MSU 19.28m plan view long section You are here
Slide 33: Eagle East Deep Exploration History: 331J
Eagle East Deep Exploration History: 331J • 331J: Undercut I • Intersected full conduit of mineralization • Intersected 27.61m conduit with 9.72m of SMSU, and 10.81m of MSU plan view 30.85 meters of 5.23% Ni and 8.74% Cu long section You are here
Slide 34: Resource Drill-Off and PEA completed in 8 Months
Resource Drill-Off and PEA completed in 8 Months Small , HG Resource but.. allows for significant LoM extension and 40% IRR
Slide 35: Eagle + Eagle East: Combined Production Plan
Eagle + Eagle East: Combined Production Plan • Combined Eagle East and Eagle mine production plan *Refer to the July 29, 2016 new release entitled “Lundin Mining Announces Eagle East Mineral Resources, PEA Results and Project Commencement” on the Company’s website (www.lundinmining.com) and the “Tec
Slide 36: Eagle + Eagle East: Contained Nickel and Copper Metal
Eagle + Eagle East: Contained Nickel and Copper Metal • Contained nickel and copper metal produced in concentrate compared to the current Eagle mine Life of Mine plan 36
Slide 37: Eagle East Development: Proposed Ramp Access
Eagle East Development: Proposed Ramp Access • Schematic drawing looking north showing Eagle and Eagle East with the proposed twin ramp access making use of the existing Eagle mine infrastructure. 37
Slide 38: Eagle Exploration Team Thank You!
Eagle Exploration Team Thank You!
Slide 39: NI 43-101 Compliance
NI 43-101 Compliance Unless otherwise indicated, Lundin Mining Corporation has prepared the technical information in this presentation (“Technical Information”) based on information contained in the technical reports and news releases (collectively the “Disclosure Documents”) available under Lundin